Form P87 – Claim for tax relief for expenses of employment
Have you paid expenses related to your employment? You may be able to claim tax relief. We provide an example, showing you how to complete form P87, which you can use to claim tax relief on employment expenses.
You can use form P87 to make a claim for tax relief in certain circumstances:
- you are not within self assessment – i.e. you do not have to submit an annual tax return;
- you are an employee and you have paid employment expenses; and
- your allowable employment expenses are less than £2,500 for the tax year.
If the claim is for the current tax year, HM Revenue & Customs (HMRC) will usually make an adjustment to your tax code. If the claim is for a previous tax year, HMRC may make a repayment by cheque – they will either the send the cheque to you or you can ask them to send it to your bank or building society or someone else.
You have four years from the end of the tax year to make a claim; so, for 2016/17, you must make a claim by 5 April 2021.
We use the annotated form plus example below to illustrate how you should complete form P87. Please do not use the details provided in the example when completing your own form.
You can complete and submit form P87 online through the Government Gateway, or you can choose to complete it online and post it to HMRC.
If you want to complete and submit the form online and have not got a Government Gateway account you can set one up as part of the claim process. This will also give you access to other Government and HMRC online services.
If you have chosen to complete form P87 online and post it to HMRC, once you have completed the form, you should save it and print it, before signing and sending to HMRC. You should retain a copy of the completed form for your own records.
Whichever method of submission you choose, the online form includes guidance, which you can access by clicking on the “question mark” radio buttons.
Please note that because the online P87 form on GOV.UK is responsive to your answers, it may look different and show different options when compared to our illustrative example.
John X, who was born 1 January 1968 (National Insurance number AB 12 34 56 A), was employed as an Area Manager by Superstore in 2014/15. John is a basic rate taxpayer. He lives at 1 ABC Road, with the post code AB1 2CD.
Superstore is based at 1 XYZ Road, with the post code AB2 3CD. It is a retailer. Superstore’s Employer PAYE reference is 123/A123 and John’s employee number, shown on his payslip, is 123.
John is not able to claim any tax relief in respect of flat rate expenses. He does not pay any professional subscriptions. His employer reimburses him for any hotel costs and meals, when he has to stay away from home for work.
John drives his own car for work, and he has to travel most days between different retail locations. In 2014/15 he does 12,000 business miles. His employer pays him mileage at the rate of 25p per mile, so he receives £3,000 in total. The HMRC mileage rates are 45p per mile for the first 10,000 business miles and 25p thereafter, so he can claim an extra 20p per mile for his first 10,000 miles (£2,000).
He will not receive a repayment of £2,000 – he will receive tax relief on the amount claimed. As John is a basic rate taxpayer, he will receive tax relief at the basic rate of tax of 20% on £2,000, i.e. £400.
John is making a claim for tax relief after the end of the tax year and he wants HMRC to send the repayment cheque direct to him.
Below is an annotated version of the postal form P87 to show how to complete the form using John’s details: